### Impact on Tax: - **Reclaiming VAT:** Becoming VAT regis…

### Impact on Tax:
- **Reclaiming VAT:** Becoming VAT registered allows you to reclaim the VAT you pay on your business purchases, which can reduce your overall costs.
- **Charging VAT:** You will need to add VAT to your sales price. This might make your products more expensive for non-VAT registered customers, but VAT registered customers can reclaim this VAT.
- **VAT Returns:** You will have to account for VAT in your returns, and if your input tax (VAT on purchases) is higher than your output tax (VAT on sales), you could receive a refund from HMRC.